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$50 M Grant to Israel Made by U.S.

A third grant of $50 million in three years was made by the United States to Israel to help it maintain economic stability during a period of heavy defense expenditures. Daniel Parker, administrator of the Agency for Economic Development, and Israel’s Ambassador Simcha Dinitz formalized the agreement conveying the grant in a brief ceremony Friday at the State Department.

Israel will use the $50 million to import industrial and other commodities from the U.S. The products will be sold in Israel and the proceeds in Israeli Pounds will be applied to support Israel’s national budget. Related U.S. services also may be derived from the grant. Parker told Dinitz that the new grant illustrated “the very substantial empathy the American people feel for you and your country.” Parker added that Israel’s “exemplary management” of previous United States grants induce “a high level of confidence in your government.”

Referring to the cost of the Yom Kippur War, Parker said it was “indeed remarkable” that Israel is surviving in view of the “unusual burden on your economy.” Noting the influx of Soviet Jews, he said “we certainly wish to assist in this effort as well.”

Dinitz replied that “you have always made us feel as partners.” He thanked “the government, the Congress and the people of the United States, not only for what they have done but for the spirit in which it is done.” Undersecretary of State designate Joseph J. Sisco emphasizing the timeliness of the grant, since it coincided with the disengagement agreement between Israel and Egypt, said that the grant would enable “many more” of the Israeli people to contribute to Israel’s peace-time needs.

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